The month of April begins with a strong fall for the Euribor, which has left the index to which most of the mortgages at variable type are referenced to 2,277% on Tuesday, April 1, 2025. This data marks a new annual minimum, with a fall below 2.3% that was not seen since September 2022. Specifically, they are 0.029 points below the previous daily data.
To put in context, the Euribor has just closed last March with a new intermensual fall, although it seems that the data At the end of the month it has stabilized and the falls are contained. Although the definitive average of March 2025 remains at 2,398%, below the 2,407% that marked in February, this data only is a total of 0.009 points between both means.
The US commercial policy triggered the fear of a rebound in inflation and an economic brake that made the profitability of the debt in the market grow, which caused the Euribor to ascend in the first part of the year. On the other hand, the expectations of lowering types were met at the ECB meeting, which subtracted 25 basic points per fifth consecutive conclave up to 2.5% in the deposit rateaccumulating a total of 150 basic flexibility points since June 2024. A week later, the Fed maintained, as planned, the stable interest rates In the range of 4.25% to 4.50%, but changed its intention to lower types for this year.
Given this situation, the index ended up closing down and the best news is taken by the mortgages at a variable type whose reviews are carried out annually (12 months). To those who have a review in March, they will see their mortgage quotas down strongly, since a year ago the Euribor closed at 3,718%, that is, 1.32 points above the current monthly mean (2,398%).
Now, it will be time to wait to see how the Euribor evolves throughout the month of April, although the first of the news, with a strong decline, falling below the 2.3%barrier, leaves good expectations, with minimal that are not seen, specifically, Since September 19, 2022in full bearish rash of the Euribor, when it marked a daily fact of 2,295% to end closing at 2,233%.
What will happen to mortgages?
The first thing to know is that the monthly data of the Euribor directly affects the mortgage reviews, since the banks recalculate the variable mortgages with the monthly average, going up or down compared with the data of six or twelve months ago.
Thus, the monthly closure of twelve month ago, precisely in March 2024, when the Euribor had just left a resounding bullish streak, remained at 3,718%, A figure that is 1.32 points above the current Monthly average of March 2025 (2,398%). Thus, those who have a mortgage review in March will see the amount of their quotas.
Those who have a mortgage review in March will see the amount of their quotas.
To see it with an example, for a mortgage of 140,000 euros to 30 years (360 months), with a 1% differential and taking as reference the month of March of the year 2024, when the Euribor closed to 3,718%, The monthly fee was 727.61 euros.
Now, with the final average of March 2025, which is located at 2,398%, the mortgage share of the owners who have review in February will fall to the 593.59 euroswhich means that They will pay 134.02 euros less than a year ago.
How is Euribor calculated?
The Euribor responds to the name European Interbank offered rate and is calculated through a panel of European banks that report every day to which rate interbank loans are made. As of 2020, the calculations are made hybridly. Panel data is included, but also the estimates of the market itself, with the aim of reducing volatility and the risk of manipulation, to which these indices were submitted at the beginning of the century.
The panel consists of 18 European banksamong which are Santander, BBVA, Barclays, Deutsche Bank or Unicredit.
Every working day at eleven o’clock in the morning, the average interest rate is published in which the financial institutions lend capital to One week, one month, three months, six months and 12 months.
#Euríbal #today #annual #minimum #daily #Euribor #Tuesday #falls #time
